Many homeowners consider only the size of the tank when choosing a new water heater—sometimes ignoring the energy factor and other efficiency measures that could cost money in the end.

 The first decision in purchasing a new water heater is the fuel source.  A natural gas unit will cost less to operate than an electric unit will, and the price difference can be paid back in energy savings in a few months.   If you have an un-shaded, south-facing location, you might consider a solar water heater, which is environmentally friendly.

And then there are tankless water heaters which are devices that generally heat the water as it is used and where it is used, like a bathroom installed under the vanity.  They have become economically viable and a whole house unit can be installed instead of a regular water heater.  These types of water heaters can provide a continuous stream of hot water.

Instead of concentrating on size, estimate how much hot water your family uses.  Here are the average gallons of hot water per use:  Bath or long shower (20 gallons), dishwasher (12 gallons) and washing machine (32 gallons).  Remember, doing research before your heater fails will enable you to select one that meets your specific needs.